October 12, 1983
Dear [ ]:
Your client, [ ], was owner of 20% of [ ] Co., which owns 23.92% of the shares of [ ] Bancorporation, which is the holding company for [ ] Bank, a New York State chartered bank at the time of the chartering of the bank in 1979. [ ] has since acquired all of the shares of [ ] Co. from members of the family. [ ] Co. now seeks to acquire an additional 23.94% of the shares of [ ] Bancorporation. You have inquired as to whether your client needs approval from the Department pursuant to Section 143-b of the New York Banking Law.
As a member of the [ ] family, this Department has always viewed [ ] as a member of the group which controlled [ ] Bank. Sec. 143-b presumes control if more than 10% of the voting stock of the bank is owned by a company. The earlier approval of [ ] as an original member of the chartering group remains operative and no further approval is needed for [ ] to expand [ ] holdings.
Sec. 130-7(a) of the New York Banking Law applies only to officers and directors of the bank and to persons owning more than 10% of the shares of the bank.